HRMS allow enterprises to automate many aspects of human resource management, with the dual benefits of reducing the workload of the HR department as well as increasing the efficiency of the department by standardising HR processes.

The payroll module automates the pay process by gathering data on employee time and attendance, calculating various deductions and taxes, and generating periodic pay cheques and employee tax reports. Data is generally fed from the human resources and time keeping modules to calculate automatic deposit and manual cheque writing capabilities. This module can encompass all employee-related transactions as well as integrate with existing financial management systems.

Before a company makes a decision regarding the selection of a HRMS solution, it is important for the management team to identify the needs of the company, its processes, and goals for both long term and short term. It is essential to the success of the project to deeply involve the HR professionals in the process. Depending on the size and structure of the company, it may be helpful to have an organization-wide meeting or to select representatives from each department to discuss HRMS goals and options.

HR is responsible for keeping people feel motivated for their work. First comes the task of defining an individual’s role. Thereby an effective feedback mechanism from time to time helps the employees to improve their skills. This helps in alignment of the organizational objectives with their own personal goals. An effective PMS helps in recognition and rewarding people’s performance.